CHAPTER- 3
3.1
Meaning of Methodology
We can say easily that methodology is a way to
systematically solve the research problem. Broadly says that methodology is the
undertaking and rules of organization of a philosophical system of inquire
procedure.
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Identify the relevant sources of data application of
appropriate data collection method and use of proper statistical test and
techniques for analysis the collected data etc. are concerning methodology of
the study.
3.2 Method of collecting
Information
To make the papers of practical training one can collect
the information in many ways like sending the question paper by the
investigator, taking personal interviews, review and survey etc. I have implied
the following two sources to collect information from Rajshahi Sugar Mills Ltd.
Primary sources
At first I made
questionnaire and handed over supplied them to the senior administrative
officer, accounts officer, production officer of the Mills. Then I asked them
my question and collected information in this regard.
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Secondary source
The secondary data were
collected form various document of the Mills. The document are as follows:
(i)
Daily summary statements
(ii)
Monthly summary statements
(iii)
Sample of ledger book
(iv)
Trial balance
(v)
Profit & loss appropriation account
(vi)
Cash flow statement
(vii)
Balance sheet etc.
3.3 Objectives of the
Study
The main objectives of the study are as follows:
i.
To study the accounting auditing and reporting
practices followed by the industry.
ii.
To study the legal framework regarding accounts audits
and report.
iii.
To suggest the better way for improving existing
accounting and reporting practice of the sugar mills.
iv.
To study the organizational set-up of the accounts
department.
v.
To evaluate the accounting and reporting practices
followed by the mills.
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3.4 Limitation of the Study
The study suffers from some problems as below:
(i)
Reluctance of Rajshahi Sugar Mills in providing data on
the plea of secrecy hampered concrete analysis of accounting system and
reporting practices in same cases.
(ii)
There are needed enormous time to accomplish this
internship program successfully, but the allocated time one month.
(iii)
Problems for lack of may knowledge about research work.
(iv)
Data selection was not sufficient
CHAPTER- 4
4.1 Definition
of Accounting
Accounting in a practical
matter. Accounting is a process by which overall result and financial condition
are unidentified and reviewed through recording the financial transaction of a
company and provided data to its users. The main purpose of accounting is to
identify and review the result and impact of economic activities of an
organization. There are many definition of accounting one of them AICPA
(American Institute of Certified Public Accountants) definition is discussed
bellow:
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“Accounting is the art of
recording, classifying and summarizing in a significant manner and in terms of
money, transaction and events which are in part at least, of financial
character and interpreting the result thereof.”
4.2 Accounting System
The accounting system is
the major quantitative in formation system in almost every organization. In
other word, Accounting system, may be defined as the collection, compilation
and systematic record of business transaction in terms of money, the
preparation of financial reports, the analysis and interpretation of these
reports and the use of these reports for the information and guidance of
management.
Accounting system is a
principal means for facilitating the management process of planning and
controlling. Accounting system records activities as they occur and provides
the feedback that is so essential to any information system. Mainly two types
of accounting system:
1.
Separate Accounting system.
2.
Integrated Accounting system.
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4.3 Objectives of
Accounting System
Accounting system means
some rules and regulation of accounting. The optimal accounting system has same
objectives, which are mentioned bellow:
i)
Internal reporting to mangers, for use in planning and
controlling the current operations.
ii)
Internal reporting to managers, for use in strategic
planning that is the making of special decisions and in the formulating of
over-all policies and long range plans.
iii) External
reporting to shareholders, government and other outside parties.
iv) To
publish report within a short time for the concern people.
v)
To provide a high degree of accuracy.
vi) To
maximize the possibility of risk.
4.4 Nature of Accounting
System
Accounting system is a form
of an organization which record report
closely and provide facilitated to the business management through determining
some information.
i)
A given period of profit/loss amount
ii)
The assets & liabilities and net worth of the
business at any time.
iii)
Information which is must be provided to the
government.
4.5 Meaning of
Integrated Accounting System
When cost and financial
accounts are maintain separately, it is necessary to reconcile the profit shown
by one set of books with that show by other than. An alternative accounting
system which would avoiate the need for reconciling the financial and cost
accounts is known as integrated or integral accounting system. In the other
word, a single book-keeping system which contains both financial and cost
accounts is knows as an integrated or integral accounting system.
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4.6 Advantages of Integrated Accounting System
An integrated accounting
system has the following advantage:
a) There is no problem of reconciliation as
there will only be one profit amount.
b) This system is economical and easy to
understand. Duplication of work and labour are avoided.
c) Cost data can be presented promptly and regularly.
d) All cost data and accounts are automatically
checked and thus cost figures are accurate.
4.7 Integrated
Accounting for Rajshahi Sugar Mills
In July, 1967, the first
integrated system for Rajshahi Sugar Mills was introduced after a study of the
then existing systems (i.e. separate system). It tried to correct four basic
options which were discovered in the old system namely non- uniformity of
accounting methods and reports, absence of a reliable method to determine the
unit cost of sugar. The treatment of the
seasonal nature of the industry , and the need for effective budgetary control.
This latest revision of the
original integrated system comes about
because of the development and extension of responsibility accounting and
budgetary control. By Planning, Production and Costs month by month for a
financial year, by ascertaining the responsibility for those costs and caling
for explanations of variance from plan, and by employing a uniform code of
accounts together with uniform monthly report forms, the system outlined in the
following pages is based firmly on the original integrated system. New emphasis
is placed on responsibility accounting. The role of cost centres in controlling
seasonal and non- seasonal expenditure is being underlined.
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Accounting Cycle
Accounting cycle may be
defined as the cycle that carries the complete sequences of accounting process
which are repeated in the same order during each accounting period.
As soon as transactions
take place they are recorded in journal and so the Accounting cycle begins with
the journalizing and concludes with the post closing trial balance. In its
cyclic path it performs other accounting procedures such as classification of business
transactions, summarization of those transaction followed by the interpretation
and analysis of prepared statement. This periodic repetition of the accounting
process or system is referred to as accounting cycle.
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